NiSource bull betting on steady gains

One investor is turning time into money as NiSource steadily plods higher.

optionMONSTER’s tracking programs detected the sale of 3,568 January 42 calls for $0.55 and the purchase of an equal number of July 37 calls for $2.05. Volume was below open interest in the nearer-dated contracts, which suggests that an existing position was closed and rolled forward in time.

He or she probably owns shares in the Indiana-based utility company and previously wrote the July contacts as part of a covered-call strategy. That obligated them to unload shares for $37, and today’s transaction raised their exit price to $42. Making the adjustment cost $1.50 but also opened the door to earn $5 more.

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